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NFL keeps looking to expand business “footprint”

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Jim Litke is gonna be upset.

The AP columnist who recently ripped the NFL’s efforts to do that which every successful business does — grow — surely will take issue with the league’s decision to expand beyond the traditional football universe.

“As our core business, we always focus on that, but it’s a sports and entertainment and media venture that the NFL has spun into,” NFL spokesman Brian McCarthy explained to Mike Vorkunov of the Newark Star-Ledger.  “At one point it was just a game, but we’ve seen the value it has to other businesses.  We see the value it has to Madison Avenue.  We see the value it has to our media partners.  So we’re continuing looking for ways to grow our business, expand the footprint of the NFL.”

This objective has prompted the NFL to launch a venture capital arm.  Each team has kicked in $1 million, and Providence Equity Partners will pony up $250 million.  That difference may seem out of whack, with the NFL contributing $218 million less than its partner.  The gap comes from the power inherent to pro football.

“The NFL is contributing the shield, which does have a massive amount of value as an intangible,” Rob Tilliss, founder and CEO of investment bank Inner Circle Sports told Vorkunov.  “So you could argue it’s pretty equal footing.”

He’s right, because the shield gives credence and credibility to anything it touches.  From products to TV shows to movies to services to anything else to which the letters N, F, and L can be applied, the league currently is the business world’s equivalent of the Midas touch.

History tells us it won’t last forever.  Which means they need to touch as much stuff as they can.

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9 Responses to “NFL keeps looking to expand business “footprint””
  1. patriotsdefense says: May 26, 2013 10:47 AM

    ‘Too Big To Fail’

  2. mackcarrington says: May 26, 2013 10:52 AM

    I would suggest they invest in a company that can produce a concussion preventive helmet.

  3. jayhawk6 says: May 26, 2013 10:59 AM

    The NFL needs to spend more time looking after its fan base. More and more people are becoming more openly critical of public financing of football stadiums and constantly increasing costs for tickets and parking. Roger Goodell’s maneuver to push back the date of the draft simply confirms the league’s tone deaf obsession with keeping the profit margins healthy.

    Now this.

  4. dd393 says: May 26, 2013 11:43 AM

    The NFL is a license to print its own money.

  5. mustbechris says: May 26, 2013 11:51 AM

    I’m starting to hate the NFL.

  6. thestrategyexpert says: May 26, 2013 1:22 PM

    It’s nice to see the NFL make some investments, but they need to do more investments where it counts in key elements of the game’s infrastructure. There’s a lot more efficient and powerful yield plus strategy to boost the long-term health and positioning and they are way late on making those investments.

    So kudos to the NFL for finally trying to exploit the power of their brand, however I’m just curious as to when and how they will invest in themselves where all the BIG money is at.

  7. jdhein22 says: May 26, 2013 1:42 PM

    An in-season minor league for Tuesdays and Wednesdays. 8 teams – 1 for each division, 15 players per team.

  8. vaphinfan says: May 26, 2013 3:22 PM

    If they want the NFL to grow find a way to work out a deal with networks to stop showing commericials every 5 minutes. Monday night games are the worst.

  9. greyhawk9 says: May 27, 2013 9:01 AM

    its absurd that these tax exempt money machines keep looking for more and more profitability. Why dont you guys pay for your own stadiums or make them affordable for the common family to see a game

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